When an employee is involuntarily terminated, you must give immediate written notice to the employee of a change in the employment relationship. This notice must be given to an employee who is discharged, laid off, given a leave of absence or whose status changes from employee to independent contractor.1 The law does not require a written notice for employee-initiated terminations or cessation of work due to a labor dispute, although you may choose to provide the notice.
There is not a specific form for the required notice. You can create your own form, send the appropriate information in a letter, or use the sample Notice to Employee as to Change in Relationship.
If you create your own form or letter, you must include the following information:
Once completed, you give a copy of the form to the employee and retain a copy for your records. You can request that the employee sign an acknowledgment of receipt of the termination notice, but you are not required to do so by law.
The employee must be given a copy of the notice no later than the effective date of the termination.
Use the sample Notice to Employee as to Change in Relationship to meet the EDD’s requirements and to protest UI claims by an ineligible employee.
Employers who document a specific reason for termination, such as poor attendance or performance, can use this form to help defend against employee allegations of wrongful or discriminatory termination. The sample notice provides checkboxes for you to choose the reason for the employment status change. The specified reasons correspond with the factors that the EDD considers to determine an applicant’s eligibility for UI benefits. This form is valuable documentation if you must contest a claim for UI benefits. The sample notice lists the following reasons for termination:
Give the completed termination notice to the employee. Although not required by law, request the employee’s signature acknowledging that they received the termination notice. You are not required to submit a copy of the Notice to Employee as to Change in Relationship to EDD. Retain a copy in the employee’s personnel file.
1. UI Code sec. 1089; 22 CCR sec. 1089-1